Macro Transmission Returns to Growth-Led Narrative on Strong US, Australian Data

The macro transmission chain pivoted to a growth-led narrative last week, driven by stronger-than-expected US activity data and resilient Australian labor market figures. These indicators boosted cyclical sentiment across markets.

Inflation signals offered no clear direction: Australian CPI came in softer, while Canadian inflation printed firmer. The mixed picture leaves central bank policy paths uncertain, though the renewed focus on growth may support risk-sensitive currencies near term.